A pension is a payment made by an employer to a worker upon retirement. The word itself comes from the Latin “pensio” (“a payment”). Pensions can be provided by private sector or public sector employers, although in recent years, public sector employees have been more likely to receive pension benefits.

Pensions have been used by governments dating back to Ancient Rome to attract and reward civil servants and aid them in retirement. Public pensions in the United States predate the Revolution. And in Illinois, pensions were issued to teachers as early as 1915.

Emperor Augustus Caesar is thought to have created the first pension plan in 13 BC for legionnaires who had served 16 years in Rome’s foreign campaigns. Since it was funded entirely through general revenue (and Augustus’s deep pockets), the world’s first pension crisis soon loomed. So, in 5 AD, Augustus defied his Senate critics and the ankle-biting, hand-wringing pundits in the Forum by imposing a 5 percent inheritance tax and 1 percent sales tax. This created a better-funded pool (“aeririum militare”). He also extended the required time of service to 20 years to maintain pension stability. The Augustan concept of public pensions died with the Empire. But by the 1700s, most European powers provided pensions for military officers.

During the American Revolution, some colonies provided ongoing payments to military personnel injured in the conflict. In 1775, the Continental Congress authorized pensions for naval forces; U.S. military pensions have been issued continuously ever since. Pensions were expanded during the Civil War, in which “widows’ pensions” were issued to spouses of fallen warriors.

The earliest known public pension plan for non-military personnel in the U.S. was an 1857 benefit issued to New York City police officers. As civil service grew, the Federal government – as well as local governments – sought to recruit capable employees by offering a pension benefit. This became popular during World War I when a wage freeze was in effect. In 1916, 159 cities offered municipal employees pensions. Five years later, more than half of American cities had a pension system (primarily for firefighters, police officers or teachers).

The earliest known pension in Illinois was provided to teachers in 1915. The number of pension plans provided by both public and private sector employers grew during the Depression. The first statewide public pension system in Illinois was the Teachers Retirement System (TRS), founded in 1939. Two years later, both the State Universities Retirement System (SURS) and State Employees Retirement System (SERS) were established. The Judges Retirement System (JRS) was created In 1944, and in 1947, the General Assembly Retirement System was started.

Today, more than 760,000 Illinoisans, made up of both current employees and retirees, are members of one of the State’s five public pension systems.